Ron's basis in his stock is $4,000. The corporation has E&P of $5,000 and distributes $6,000 to Ron. (a) How much dividend income does Ron have? 5000 Distr Go00 (basis 4000 Basis 3000 1000 (b) What's his new basis in his stock? Basi'ct 3 000

Ron's basis in his stock is $4,000. The corporation has E&P of $5,000 and distributes $6,000 to Ron. (a) How much dividend income does Ron have? 5000 Distr Go00 (basis 4000 Basis 3000 1000 (b) What's his new basis in his stock? Basi'ct 3 000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 41P

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Question

Ron's basis in his stock is $4,000. The corporation has E&P of $5,000 and distributes
$6,000 to Ron.
(a)
How much dividend income does Ron have?
5000
Distr
Goo0
Basis
4000
Basis
3000
1000
(b)
What's his new basis in his stock?
Basict
3 000

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